Standard costs are used in the calculation of:
A) Quantity variances only.
B) Quantity and sales variances.
C) Price and quantity variances.
D) Price variances only.
E) Price, quantity, and sales variances.

Question

Quizplus · Accepted Answer

Standard costs are used to compare actual costs to expected/standard costs. Price and quantity variances are the two main components that make up the difference between actual and standard costs. Therefore, standard costs are used in the calculation of price and quantity variances.

Standard Costs Are Used in the Calculation Of